The annual demand for a product is 800 units and unit
price of the product is #0.02%. if the ordering cost is #
and the holding cost is 10% of the unit price; determine
the (i):EOQ in the units. (i) total variable cost
(ii) number of orders per annum
To determine the Economic Order Quantity (EOQ), we can use the formula:
EOQ = √((2DS) / H)
Where:
D = Annual demand for the product = 800 units
S = Ordering cost per order = #
H = Holding cost per unit = 10% of the unit price
However, the unit price of the product is given as #0.02%. Since we don't have the exact value of #, we cannot calculate the EOQ without this information. If you have the actual value of #, please provide it so that we can proceed with the calculations.